Elizabeth Goodman, Financial Assistance Programs

North Central NCWCNorth Central NCWCAugust 17-19, 2009August 17-19, 2009

Chicago, ILChicago, IL

Financial Assistance ProgramsFinancial Assistance Programs

North Central NCWC – August 2009 -

Financing Growth Opportunities

Perfect Business Opportunity Found– Determine how much ‘cash’ will you need

Capital, Working Capital, Total Cash flow needs assessment• Review financial projections (expense and

income timing)» Cash flow & Working capital needs

• Review supply and equipment lists» Capital needs

– Determine how you will finance the amounts


Document Plans

Complete or update Business Plan– Operational plans and organizational infrastructure

impacts– Financial Statements and Projections

Income Expense

• Operating and Capital• Cash flow

– Projection alternatives (what-ifs) Best Case Worst Case Breakeven

– Don’t forget to include loan funding and repayments (principle and interest) on Cash flow


Identify Funding Sources

Internal versus External Financing– Internal

Investments Endowments Current Cash flow Unrestricted and Restricted Reserves

– External (related parties may need to be disclosed on Form 990) Banks/Financial Institutions Grants Donors Economic Development or Federal Loan Programs

• Hub Zone Financing NISH


Funding Options/Challenges

– Internal Financing Loss of income Flexibility Financial strength Opportunity costs

– External Financing Covenants Loan requirements Reporting Credit worthiness Financing costs


Financial Statement & Projections

Balance Sheet– Review ratios

Compare to benchmarks

• Non-profits

• Commercial

– Understand expected impact Ratio impact Liquidity reductions Debt covenants


Income Statement– Review ratios and impact

Compare to benchmarks

• Non-profits

• Commercial Include depreciation and other non-cash expenses Include costs of capital/borrowing Include impacts on existing infrastructure (overhead

departments)

Financial Statement & Projections (cont’d)


Cash Flow Projections for 3-years– Review business plan and environmental scan

Include best and worst case options Determine break-even point Ensure understanding of carrying costs

Financial Statement & Projections (cont’d)


Equipment used to manufacture a product, provide a services, or to sell, store and deliver merchandise

– Office furniture, business equipment, machinery These items are depreciable, and their cost is expressed as “depreciation” expense on the income statement

– Depreciation is a non-cash event but is key to planning for equipment costs and replacement Need to “replace” funds to buy new

Capital Equipment List


How is loan/investment to be spent?– New Equipment – Working Capital

Inventory Supplies

– Specific items to be purchased/leased How will the loan/investment make your business more successful or profitable?

Application or Expected Effect of Loan or Investment


In all cases you must be compliant in

the following areas:– Applicant must be a producing CRP– Must be current in submission of invoices

and payment of NISH fees (within 30 days)– Must be in compliance with Agency and

AbilityOne ratios– Must be timely in submitting QERs and

404s

Qualifications for NISH Loans/Leases


NISH Financial Resources

Resource Maximum $ Pay Back Terms

Interest-Free Loan $75,000 or 15% of projects annual PL value

Up to 3-years

Capital Equipment Loan $100,000 Up to 5-years

Capital Equipment Lease $500,000 Up to 5-years

Capacity Building Lease $500,000 Up to 5-years (PL add within 2-years)

Working Capital Short-Term Loan

Up to $200,000 6 months


NISH Financial Resources (cont’d)

Resource Maximum $ Pay Back Terms

Training Incentive (Voucher) Program

Earned based on: direct labor hours, new producing CRPs, NISH EDs, and survey respondents

N/A

Disability Eligibility Documentation Grant

$500 per potential worker

N/A

Management Assistance Grant $11,500 N/A

Professional Development Grant

$11,500 N/A

Prompt Payment Discount ½ to 1% discount of net commissions due NISH

N/A


Teleservices – To assist with hosting and start-up costs

– POC: Peggy Gritt, [email protected]

Secure Document Destruction– To assist with initial entry into SDD with interest-

free financing

– POC: Shawn Murphy, [email protected]

Lines of Business Specific

mailto:[email protected]



Capital Equipment Loan Fund– Must increase direct labor hours, improve quality, or

safety, or provide an accommodation

– Interest-free if increase direct labor hours and jobs

– Low interest if no direct labor hour increase

– Interest rate is ½ of Prime per the Wall Street Journal on the date the loan is disbursed

Working Capital Short-Term Loan– Effective 10/1/09

– To assist with raw material and related inventory carrying costs

– To be repaid within 6 months

Key Points on Loans


Capital Equipment Lease Program– Must increase direct labor hours– Leases are issued through Associated Bank in

Minnesota– NISH guarantees the lease balance and funds the

interest portion

Capacity Building Lease Program– Work targeted for PL Add within 2-years– Requires commitment from:

PA CRP/NPA NISH Executive Director

Key Points on Leases


Management Assistance Grant Program– Fund start-up cost on new contracts– Maximum grant is the lesser of $11,500 or the salary

and benefits of the Project Manager, Supervisor, or Trainer for a 3-month period before and 1-month period after project start-up

Training Incentive (Voucher) Program– Offset expenses for NISH training, the NISH annual

conference or an NCWC meeting– Vouchers must be used within 1-year of distribution

Key Points on Grants/Vouchers


Disability Eligibility Documentation Grant– Designed to assist with cost associated with

AbilityOne disability determination costs Recent survey indicates that 35% of AbilityOne

workers are self-referred Can be used for up to 2% of workers (maximum of

20 per CRP) $500 per applicable employee Brian DeAtley, [email protected] 571-226-4523

Key Points on Grants (cont’d)



Professional Development Management Grant– Goal: To increase upward mobility for people with

severe disabilities to supervisory position– To assist with cost associated with the recruitment,

accommodation, training or relocation

Key Points on Grant/Program


Prompt Payment Discount– It is NISH’s policy to allow CRPs to take a discount

in the amount of ½ of 1% of net commissions due to NISH if the commissions are paid by the CRP within 10 days following receipt of payment from the government

– Please contact your AR representative for correct application of the discount amount

Key Points on Payment Discount


Applications: www.nish.org Required Documentation

– Annual Audited Financials– Most Recent Quarterly Financials– UCC-1 for Capital Equipment Loan– Contacts:

Lorretta Stevens [email protected] 571-226-4501

Elizabeth Goodman [email protected] 571-226-4506

Financial Assistance Contacts

http://www.nish.org/




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Elizabeth Goodman, Financial Assistance Programs

Economy & Finance

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